Trial open cut mining planned: ~100Koz pa Au at a conservative 1oz/t Au, page-174

Hi Asculpeous and all,

“(any thoughts on how to pick these stocks early would be appreciated)”

I have been involved in the mining industry since 1975 and have been manufacturing heavy mining equipment in my private company since 1989.

http://www.ade.net.au/about/our-history/

I read lots of specific mining journals and keep a constant eye on things like the Tenders and Quotes columns. Large mining trucks and heavy mining equipment are not normally bought off the shelf; often from the start of a quote, letter of intention, purchase orders, over-seas manufactures delivery time and any local manufacture is often not less than twelve months. In fact that would be fast. If I see a particular mining company selling ten fifty tonne trucks and ordering twenty one hundred and fifty tonne trucks my steel trap like mind tells me this company could be increasing production!

I once shared this with a member of the Port Philips Publishing team up at a conference in Port Douglas last year and he sked me if I was guilty of insider trading. I pointed out that this kind of information is always in the public domain it’s just often ignored by many. Having around twelve months prior knowledge of a mining company increasing production as far as I’m concerned is just another useful tool.

Other than that I try and read and research as much as I can about a company and look for a sound management with a good story and then weigh up the risk to reward ratio. Obviously I don’t claim to get these things right all the time as our new resident Troll likes to points out; however, if I do make a mistake I take it on the chin and move on.

Prior to ever considering buying any Gold exploration or producing companies I made sure that I was holding what I feel is an adequate amount of physical Gold stored outside of the regular system. Whist I have done this since 2002 I see this more as an insurance policy on my future purchasing power rather than as an investment. However, moving from around AUD $400.00 to AUD $1,600.00 is still preferable to other types of insurance premiums.

In regard to BBX I like the current prospects, they don’t have too many shares on issue and they appear to have a sound management that are working hard to increase shareholder value. As I started buying back at two cents so far my hunch appears to be doing OK.

By the way if you do find some magical formula for picking award winning Gold stocks please don’t forget to share it with us all in here.

I notice you are a BBX shareholder so you obviously have some skill in picking out stocks with a decent risk reward ratio and later this year when they are trading over a dollar you will have every right to be pleased about that. The Troll and other Gold negative types by then will look even more foolish than they do today.

Good luck with it all.

Cheers and very best regards: Andy